How to Start a Small Business in India

As we all know, under the rule of present government, Indian economy is taking a beating. Job opportunities are dwindling very fast. Even if you find a job opportunity then it is only for highly skilled people like IT professionals and other kind of experienced jobs.

Not everyone is great in academic qualification. Therefore, what you are going to do when jobs that pays you good money is simply not there. If it is there then it is only for highly qualified or experienced candidates. And its also very difficult to get a sarkari naukari because there is a very high competition for every vacancy.

What you are going to do if you are a young college graduate, a man who is looking for a job for years now, an employee who is fired from his company, a housewife or even a retiree. Well! There is a way out.

You can start a small business in India.

Start A Small Business In India

Opportunities for Small Businesses in India

When economy is under pressure and you are looking for a job then best way is to start a small business in India. As I said earlier, you can start a small business on your own.

Opportunities to start a small business here are great. In this article, I will tell you 10 different types of small businesses that you can start and make a lot of money.

You will never run out of ideas in India for starting a small business. There is a lot of thing that you can do even if you do not have much experience. Moreover, you can also easily meet the financial requirements.

The benefits of Small Business in India

Before I talk about 10 different types of small businesses, let me tell you some benefits of starting a small business in India. These benefits you will not find in other types of regular jobs.

Small Business Makes You Self Employed

The first one, in small business you are self-employed. You do not have to take orders from your boss. There is no fear of being laid off. Whenever there is a financial crunch, corporation fire their regular employees without any notice.

Here you do not have to worry because you manage your own business and everything depends upon you. Self-employed businessman do not have to worry about economy or anything else, they just keep going.

Long Term Scope in Small Businesses

When you are starting your own business then you do not have to worry about monthly income. Future of a small business is really great because it is closely run by an individual and close family members. Hence, they take care that nothing goes wrong.

Moreover, you can make huge amount of money like any other business. You do not have to depend on your company or corporation for financial success. If you work as an employee in an MNC then you get salary only what your company decides. However, in running a small business you can make unlimited money. All the profits your company makes in yours.

Everything depends upon you.

Better Customer Care in Small Businesses

I am not saying but you just visit Google and type the name of any big company or its service followed by complaints & you will find thousands of victim on different forums & complaints boards complaining about the services provided by these companies. Everyone is in the race of making profits only without giving any good service & customer care.

There is no good care about the customer by the large corporations. You have to try very hard even to talk to their customer care dept.

But in small businesses, you will find a good customer care. You can directly talk to the business owner. One of the main reason small business flourish is better customer care.

Good tax savings in small businesses

Well! I am not telling you to evade tax here. We all know this is illegal. However, I want to make a point here that you can save a lot of money in small business.

You can hire a good CA who can give you the best ideas of saving your tax against many expenses that you can show to reduce the tax burden. Check here one of the article which explain about 10 ways to save tax.

Types of Small Business

Now let us see 10 small businesses that you can start in India and make money without having to lose anything.

1. Opening a Small Restaurant

First one, that any young college graduate or a working employee can do is open a small restaurant. It really does not need any kind of experience. Today, when urban centers are growing and people need places to eat out. They do not want to cook themselves but they can pay for eating out. So there is a huge market out there. Read the article on Rediff which discusses 8 key points in starting a restaurant business.

What Are Requirements?

You need to find a location where people are looking for an eat-out. You can try to find locations near companies where young people work. Then you have to pay rent to the owner for the land. First you have to pay yearly advance and then rent on monthly basis.small restaurent business

You also need cook and some basic hotel staffs. 12 to 15 people will do every type of job from cooking to serving to cleaning.

Requirements are:

  1. A good Location
  2. 12 to 15 Staff for cooking and cleaning
  3. Cashier or accountant

How to Get Finance?

As I said earlier, you have to pay rent on monthly basis and payment for cooks. Before you start making money, you have to pay these guys who will work 12 hours daily for you.

Usually you get money from your family or you can go for small loans. People start small restaurants with their own hard-earned money. But today banks also give loans for starting up a restaurant. It is very profitable. You can talk to a financial consultant who can better tell you smart ways of taking loans.

Hence, getting finance must not be a difficult thing here.

What Are Difficulties You May Face?

Well! While starting a small business you might face some difficulties. Here are they.

  1. Honest cooks who will work regularly.
  2. In starting you need patience if your business is not running in profit.
  3. Listen to customers if any complains.
  4. Your owner may increase your monthly rent.

2. Opening a Kiosk

Kiosk is nothing but a small stall. Stall can be anything like a tea or coffee shop, which offers some refreshments. It can also be a place serving eateries like cakes, puffs, pastries and cold drinks.

You might have seen kiosks near cinema halls, railway stations, bus stations, government offices, in colleges etc. People will always come there for refreshments. It is very profitable business. You will never lose money.

What Are Requirements?

To run a kiosk you have to wait for tender, you can get a kiosk to run in a good location. You have to talk to your contractor who will give you a kiosk on contract. Here are somekiosk business requirements before you open a kiosk.

  1. You need a small shop or stall
  2. Monthly rent to your contractor.
  3. Supply of refreshments like cake, puff, cold drinks etc from a bakery that is in contact with you.
  4. An honest person to run that kiosk, one or two. If you are busy.

How to Get Finance?

Well! To be honest for opening a kiosk you really do not need much money. You can ask your parents if you are a college graduate or if you have money then you can start on your own.

Here money required is very less.

What Are Difficulties You May Face?

Well! Here getting a contract is going to be very difficult because hundreds of applicants are waiting to get a chance to open a kiosk. Especially if location is very good, where many people come on daily basis.

3. Opening a General Store

Opening up a general store is quite profitable when urbanization is growing rapidly. General store means provision store that caters daily essentials for people. It can be food items, groceries, even apparels.

People have to always fulfill their basic needs so they have to go nearby general store. You can also open a store with all the items that a person needs for his daily life. Store will always  run in profit. general store

What Are Requirements?

Here you have to arrange few things.

  1. A rented shop in a busy area or colony.
  2. Loyal customers
  3. Little bit of advertisements
  4. Some men to bring in goods in the store

How to Get Finance?

Financing is just easy as financing a kiosk. In fact, in India opening up a general store is a family business. So it would not be difficult for you.

I recommend you to spend more money on store’s interior. Ambience must be good to improve shopping experience of customers. It means you have to spend more money here.

What Are Difficulties You May Face?

In this small business only difficulty that you might face is patience. You have to wait for some time before you start making profit. Otherwise, there is no major difficulty.

4. Starting a Coaching Center

Almost everyone in India has seen posters saying “Coaching Classes For Class 12 ” etc. In India, there are millions of students in every city who are in class 10 or class 12. They desperately need tuition and other coaching classes to get better results.

You can definitely get hundreds of students daily to teach them. There is a lot of money to be made here. Students are not satisfied with their regular studies and they are always looking for coaching classes.coaching class business

Moreover, it is not necessary that you have to teach regular course material. You can also give coaching on personality development, speaking fluent English, computers, cooking, dancing,  painting etc.

What Are Requirements?

Let me explain you some requirements to start this small business.

  1. First one is that you have to know a subject that you are teaching. You must have experience and total control on your subject. Any one subject is enough.
  2. You need a classroom with a board and some furniture’s. I recommend conducting classes in a good location where it looks professional.
  3. You also need a faculty of teachers or instructors. Initially, you can start on your own.
  4. Lastly, you have to advertise about your coaching center in newspaper or by distributing pamphlets in colleges, bus stops etc.

How to Get Finance?

Let us see how you can finance this business.

  1. You need to pay rent where you will take classes. If you do not have enough money then you can start your class in your home also.
  2. Later on, you have to recruit or look for new faculty members, teachers who will teach the subjects.
  3. You also have to spend on advertisements to get more students.

What Are Difficulties You May Face?

  1. To start a coaching center you have to spend very much on advertisement because you are new to this field.
  2. You also have to talk to parents of your students because some students do not perform well.

5. Mail Marketing

Mail marketing is a completely home based business where you can run it from the comfort of your home. It is good for women who cannot go out. Moreover, it takes very little to startmail marketing business this business.

In mail marketing you simply have to promote about a business by sending a mail to various customers. In a mail there will be a pamphlet, which will tell the customers about a product. If they buy that product then you get commission from the company.

What Are Requirements?

Here are some requirements before you start mail marketing business.

  1. You have to register for a company.
  2. You need to write a sales letter, which must convince the readers.
  3. You may need a color pamphlet that is going to tell the benefits of the product you are selling. You can also use black and white print.
  4. Envelopes and stamp-posts for sending pamphlets to customers daily.

How to Get Finance?

Here getting finance is also very easy. Main spending will be on stationery like envelopes, stamps and mailing costs. If you want to go for color pamphlets then printing cost would be more.

You can get your finance from your family members. You do not need any loan for this type of small business.

What Are Difficulties You May Face?

Difficulties you might face are

  1. You have to write good sales letter that must attract the attention of your customers. You must develop writing skills and this is very difficult.
  2. For printing color pamphlets, you have to spend more money. It can cost very much if your budget is less.

6. Opening a Consultancy Service

Do not get panic when I mention consultancy service. You do not have to build a consultancy service like Infosys or Wipro. Here a consultancy service business is where you can afford toconsultancy-business build it in few months.

In consultancy service, you will consult young college graduates regarding their future plan. You will make money when you recommend the right company to the college graduates where they can be recruited.

Mainly a candidate will come to a consultancy service to ask a company that can give him a job. In return you charge a fees for telling the right place.

What Are Requirements?

Consultancy services can be very profitable but it needs certain requirements.

  1. First you have to build a relationship with major companies (MNC) that needs new recruits.
  2. Then you also have to build contacts with local companies which are very small and they hire few candidates.
  3. Off course like other small businesses, here also you need an office space. You can even start from your home if you like.
  4. You also need to spend on advertising your consultancy service. You can buy space in newspaper for classified ads.

How to Get Finance?

Well! Banks do provide loans if you want to start a small business like consultancy service. You can also invest money from your savings. But ultimately in consultancy service more than money you require the knowledge.

What Are Difficulties You May Face?

As I said earlier here only difficulty you might face is building a contact or relationship with major companies and small companies.

You have to know them all and stay in touch with them. It is not very easy because you must have some adjustment or influence in these companies to get important knowledge out of them. You might face this major difficulty.

7. Network Marketing

In earlier blog posts, we did talk about the network marketing. Network marketing is actually a no brainer. Even if you are 10th pass you can become a network marketer & make money like a very successful doctor or an engineer.

In network marketing, you have to build a team under you, which is going to sell products to customers. First, you have to start alone and convince people about a product. For example, you can start with Amway products. Check the list of top 10 MLM companies in India.

You have to get people to become member under your leadership. You have to expand your  network with more members enrolling in it. network marketing

What Are Requirements?

  1. First is you have to sign up for a company like Amway. For registration, you have to pay small fees.
  2. Then you need some time to promote the product among people.
  3. Lastly, here requirements are not any physical like office space or paying rent. Here you need to have certain qualities like leadership, hardworking, honesty, and also smartness.

How to Get Finance?

The good news about this small business is that you do not need any money. Yes, you need small amount of money only to be registered. That is all. In fact, you will make money after you start getting members.

This is a small business where investment is zero and in return, you can make a lot of income. All depends on your hard work and leadership quality.

What Are Difficulties You May Face?

The only difficulty you may face is how to overcome your shyness. Here you have to stand like a leader and motivate your team members. Check the top 10 strategies that will help you to become a successful MLM leader

Second is that you need a lot of time. You can do as a part time work but still ample time is certainly required here.

8. Counseling

A counselor is a person who gives an advice to people who want solution for their problems. Counseling is different from teaching because it is very personal. A counselor will meet its client one on one.

In India where middle class is growing rapidly and people’s income is increasing, they would not mind to spend extra money for consulting a counselor. They are ready to pay that cost if they see their problems are solved through counseling.

There are different types of counselors however, I tell you some of them which people are looking for. Career counselor, marriage counselor, mental health counselor, relationship counseling counselor, counseling about how to grow a kid etc .

What Are Requirements?

Here are requirements to be a counselor.

  1. You must know your subject very well, only then you can help others.
  2. Affluent people in this country only prefer counseling. So you need to open your office in an area where people from affluent class lives.
  3. Here building contacts with people is very important. Whenever you attend conferences, seminar, parties or concerts never forget to give them a card printed with your name and address. Card will tell them about your counseling job.

How to Get Finance?

Here your main expenditure would be in building contacts with people, who are very affluent. You have to spend on travelling for meeting various people from different lifestyles.

Moreover, to have an office in a posh area is also very costly. So you need finance for these two things.

What Are Difficulties You May Face?

Here you have to wait for clients before you start making money. Moreover, you also have to spend money for office space in a posh area.

In India, ordinary people do not know about counseling. They go for rudimentary form of advice from non-professionals. Therefore, awareness is low among ordinary people.

9. Taking a Franchise

Few days back I wrote an article about how to become a franchise. Starting your small business as a franchisee is different from opening a general store. Opening a general store means you are just one entity. However, starting a franchise means you have to become part of a corporation.

You have to take license from franchise like McDonalds, Café Coffee day, Star Bucks, Pizza Hut etc. With their permission, you can open a store and make profit. You do not have to wait for customers because these are very popular brand.

What Are Requirements?

Here are some of the requirements.

  1. You need a license from the franchise.
  2. You will have to hire a lawyer for legal requirements.
  3. To open an outlet you need a space, which is good enough.
  4. Team member who can work at least 12 hours a day.

How to Get Finance?

You can get loan from banks or you can also ask your family members to involve in this business. Opening a franchise is quite difficult because you need an area that attracts lot of customers.

What Are Difficulties You May Face?

The major difficulties could be

  1. Arranging finance would be a major challenge.
  2. Legal requirements would not only cost you extra money but needs an extra effort.

10. Online Business

The last and most effective small business that you can begin is online business. You start earning money from the comfort of your home. You can make hell lot of money with minimum investment.

There are different types of jobs that you can do online. You can become a blogger, data entry job, internet marketer, freelance writing jobs etc. Today thousands of people in Indiaonline-business are making money online.

No experience is required, anyone can make money online.

You can find more about top 8 online business ideas here.

What Are Requirements?

For an online business, requirements are very less.

  1. You need a desktop computer with an internet connection.
  2. You need typing speed of 20 to 30 words per minute.
  3. Writing skills are very important.

How to Get Finance?

I do not think you need any finance to get a computer with internet connection. If you have a mobile phone, then getting a desktop with internet is not that difficult.

What Are Difficulties You May Face?

  1. You have to be careful about scams and do not think that online business is get rich scheme. Nothing will happen overnight, you have to wait with patience. This is not a jackpot.
  2. Do not give up too early, you must try then only you will succeed.
What Next
  • Choose any one small business out of 10 and start working today.
  • Best of luck from jobs8home blog!
  • For more information or help keep following our blog. We are here to help you make more money.
  • Also refer – 101 Small Business Ideas


    • N S Gnanasundaram says

      It is really amazing and let the recipient make use of these ideas to come up in life.

  1. MADHURJYA says

    thanks for sharing your ideas and opportunities. I want to start a online or offline data entry job. Can u suggest me some reliable paperwork sites ?and also what the minimum cost will be?


    . I want to start a online or offline data entry job. Can u suggest me some reliable paperwork sites ?and with
    out investment

    • Pramod Pai says

      Try register as a worker on the top right hand side.I make quite a lot of money using this site

  3. says

    If you are looking for a franchise business in India in real estate then RE/MAX has the best new business opportunity in property franchising. The world’s largest selling real estate company can help you become a property broker or real estate agent with extensive training from the top real estate consultants.

  4. Arul Jude says

    I am trying to set up a clothing store at Bangalore, this is a new start up and me and two friends are starting it in a partnership. I want to know the licences i need to have to start this store and we wont be investing more than 5 lakhs. Could someone tell me how i can go about it?

  5. janci says

    HI… all your information is very worth and reasonable, but i’d like to export business at garments like nighties and tshirts and pooja things can u suggest and help my business?

    • Sandeep Baliyan says

      Hi Janci,

      You can start from Linkedin network, there is a big demand in Africa for these T-Shirt and Nighties. I have few contacts so i can help you.


  6. Tanay Makwana says

    Hi! I’m 19 years old (EXTC Engineering Student) & I want to start my own business of making small Electronic devices and selling it in market. please Guide me…what would be the legal requirements to start such business

  7. K.Bharani says

    Hi All,

    I wanna to start Data Entry Projects which we can do “work from home” with my friends. Please let me know how can I start and if there is any project are avaible.
    Phone#9916500230 (India)

    Thank You :)

  8. Mike says

    Can you give me the contact information for a company (preferably in Bangalore) that can help me set up a business in India? (Things like obtaining a DIN, Registering the Company Name, Filings with the Ministry of Company Affairs, Getting a TAN, etc.)

  9. jyoti says

    I want to start a business with an investment between 5-10 lacs..
    please suggest me some export business from which I can get profit.


    • Rahmat says

      I have a small business in Canada and i would like to franchise it in India. Setting up the store, training and all the products will be my job. I am for someone who is already living in India, so i can meet them and talk to them about the idea. Once we all agree on the terms then we can talk about other things. Please let me know. In the meantime i am searching to see if i can start a small business by myself.
      thank you

    • kishor says

      hello jyoti,
      please, send me your current location.
      your location decide you, best business for you.
      best regards,

  10. saradha says

    I like to start my own business from home. I like to do garment business later i thought to set up a store. can any one tell me where I can get suppliers for garments like formal wear for ladies .

  11. ayo ayodeji says

    good day all, i want to start a business in nigeria, i need a business plan on corporate gift company. kindly

  12. Akshay says

    I have 30 to 50 laks to invest. Let me know what is the best business plan that give a good and steady returns every month

  13. shubham raut says

    sir i want to strart my own business but i have no mony yet……..
    so plz give me way to start my work.

    • Mrs.K Amin says

      Hello ! I am Builder K Amin. If you are still interested to do any business then send me your project on my mail address .I will recharch on your project and will decided.
      K …thxxx ..

  14. Sanjay Kumar Jain says

    I want to start my business online, how many website on internet which are provide the online job for Home

  15. Rajendran says

    I would like to start farming in kerala. persons who have experience and technical idea about animal husbandry, please reply. I will get hired Land for 10 Acres with water and electricity in remote area. Rs 50000 need to get net profit per month.

  16. Ganesh says

    If you are still on the lookout for MLM models, do let me know. I present below the Highlights of the model:

    1. Registration at just $7 (close to Rs 430)
    2. 70% commissions in step 1 (ie. you get $5 per signup) and subsequently you will get 100% commissions.
    3. No door to door selling required of any kind.
    4. No need to even leave your house to make any money as everything is online.
    5. System is designed to grow your team automatically, once you have sponsored the initial 3. (This is where most people give up as they are not able to grow their teams). But in this case, the system does it automatically for you.
    6. Your earnings levels move from 70% to 100% depending on team size. (so its a double benefit).
    7. Your one time effort of sponsoring people is rewarded EVERY MONTH. Not just once. So you have sustainable earnings.

    If all this sounds interesting, I can send you the details and you can register from home. Pls email me at

  17. Amita Johnsy says

    Great tips for starting a new online small business in India! People are now-a-days chasing more for online working from home jobs.That’s true for the current trends worldwide!

  18. amar says

    want to start a business with low cost high earnings
    hard work is on me
    not ind till date any site for true business
    i know only faith and nothing

  19. Sushil says

    Have gone through the article,. its interesting. For last one year i am trying to start a small business with max 5 lakh.

    Currently, i am employed as a sales manager.For last one month, I have promised my wife that, before Feb, 15., I will start a business,

    Pl. help me.


  20. n.thirumurugan says

    as ihave suceesfully shared for three members but i did not get any black bar at he bottom of the web site

  21. Kamlesh says

    Hi, Do you want to start your own advertising & marketing agency? Prolix Advertising & Marketing Agency looking for franchise partners across India. Very low initial investment. For more information contact

  22. vasim says

    dear sir i have a statr new small bisuness. so pls.. send new bisuness idea i have a invest 100000rs

  23. Kush kumar says

    Hi ! people i just need to know that , Actually i want to start a service providing company for computer/laptop . How i should start and run it .

  24. ram says

    I came from Brampton, Canada now living in india near chandigarh want to start my business for exporting to Canada or importing to india .if someone need my help or someone help to to start any business please


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